How to Prepare to Become a Successful Real Estate Investor

Investing in real estate has been one of the building blocks of private wealth for a very long time. It has the potential to make the average man very rich, if he knows what he is doing. Real estate investing not only generates a solid income stream, but also provides a number of important tax benefits.

Any business that promises great profits also includes the possibility of great loss. Most losses are the result of mistakes that could have been avoided. Let's look at some steps to take that can help you be successful.

Step 1 - Educate Yourself!

DO NOT move blindly into real estate investments because the market is glutted with properties that are actually affordable and interest rates are low - or because you suddenly have a sizeable chunk of income that you want to invest.

The keyword in the previous paragraph is "blindly". All of the reasons listed are good reasons for becoming a real estate investor, but do so with your eyes wide open. Learn the system and learn how it can work for you - become a real estate investment master.

Begin at the beginning - dig into the fundamentals. Talk to an expert in the field and find out everything you "don't know." From that discussion develop a list of questions that you need to have answered and go to work finding the answers. With all the information sources we have available today, finding the answers should be fairly easy - possibly time-consuming, but easy.

Talk to everyone you know who has done well with this type of investing, pick their brains. Get them to share their experiences and mistakes they made if they are willing. Ask about books they recommend. Then, begin your research and study through online sources and the old-fashioned way - the public library.

Do not read just one book or watch one set of videos. To be truly educated in any field, you must study different perspectives on each topic and look for critical threads that run through all the material regardless of who the author is. Your understanding will begin to develop and you will slowly develop a solid knowledge base that will help you be successful.

Begin to network with others in the real estate world, agents, brokers and investors. In fact, joining a real estate investment club or taking classes on real estate investments could be fun and extremely useful in furthering your education.

Step 2: Get your finances in order

I am sure that it is obvious, but I am going to say it anyway. Investing in anything requires capital. You must either have personal capital to invest, financial partners that will help provide the capital (and hopefully have some experience in real estate investments), or you must have the assets and a credit history that will allow you to finance your purchases. They all work, but the bottom line is that you must have the financial strength to move forward.

Step 3 - Specialize in the type of real estate that interests you the most

Focus is critical. Don't buy a little of this and a little that. There are so many different types of real estate that without focus, you will not do well. Which area interests you the most - and why? Which type matches your personality, abilities and skills? Your choice should "fit" you and, most important, it must have the potential of helping you reach your financial goals.

If you are a do-it-yourself person with a creative flair and would enjoy being involved in the day-to-day oversight of properties, single family fixer-uppers would be a good possibility. On the other hand, if you have no interest in managing the properties, apartment buildings make more sense because apartment buildings generally have on-site managers that take care of everything.

Step 4 - Have all your ducks in a row before making the offer and finalizing the deal

Once you have decided which type of real estate will be your focus, study that market carefully - in great detail - before making an offer. Gather as much pertinent information as possible, for example, fair market value of the property, recent sales in the area for similar properties (comps), the maximum offer you are prepared to make, and have a valid estimate of expected rental income and immediate costs (renovations, repairs, etc.).

Be prepared for anything that may come up in the bargaining sessions. Make sure you are working with an experienced agent that you can trust. It is always best if the agent has been referred to you by an experienced investor. You may also want to discuss any potential purchase with other trusted advisors such as your financial planner, your attorney and your accountant.

American Millionaires Find St Martin Caribbean Real Estate Appealing: An Overview

Already a popular vacation destination, Saint Martin is fast developing as a highly profitable real estate market for the upscale property buyers overseas. More and more millionaires and business tycoons from North and Latin America and Europe are interested in the Caribbean real estate market. And most of them find Saint Martin as a prestigious location to own a property. Exemption of annual property taxes has made St Martin real estate market more appealing in the eyes of the foreign buyers.

Villas, condos, houses or cottages - options are aplenty when it comes to buying or renting a property in St Martin. Buyers from abroad often purchase villas on the beachfront and other prime locations on the island and appoint a reliable rental service agency to take care of the property in their absence. These rental service providers place the property to a renting program for tourists and vacationers. Thus the concepts like vacation rental and timeshares are rapidly growing popular in this part of the world.

The most interesting thing about Caribbean vacation rentals is that most of properties come with a host of amenities beyond your expectations. Splurge villas have designer interior featuring beautifully furnished rooms with large glass doors and windows to ensure splendid ocean views from the rooms. Fully equipped bathrooms and kitchens, dining, living, private pool are some of the common features. Private tennis court, golf ground and private beach areas in Caribbean villa rentals offer the taste of an extravagant lifestyle.

There are a number of reliable real estate agents in St Martin. Whether you want to buy or rent a property contacting through agents prove convenient. They have their own property listings with elaborate details of each and every property. Going through their websites makes your property search easier and faster. Their highly professional service makes your property buying or renting a hassle free experience.

However, there are some rules and regulations for buying properties in St Maarten/St Martin. Interested buyers should know the terms and conditions for purchasing a land or a property. But law is flexible and influenced by European property buying laws and system. Foreigners are allowed to buy property in the island but they need to produce a residency permit at the time of purchase. It can be non-working permit or working residence proof or visiting vacation permit applicable for 90 days. Buyers have to pay Notary fees, transfer tax and property registration tax.

Property Investment Fundamentals and Portfolio Planning Characteristics

Property values are driven by basic supply and demand. When 'facilitated demand' is high (willing buyers that can access finance), and supply limited, then property values rise, and the opposite is true when demand is weak and there is an oversupply of properties. With this in mind, property investments are driven on the one hand by global macro-economic and socio-economic trends such as population growth and rising incomes, whilst on the other hand local and regional factors play a key role in property values. For example, in 2012, property values across the UK continue to fall or stagnate, except in London where demand is still high and where wealthy buyers can still afford to buy homes, either as first residences or as investments. The dynamics of financial markets also play a part in defining property values, as availability of credit is key to turning demand into actual transactions, and where credit is not available property prices are likely to remain depressed. Furthermore, the general state of an economy, either locally or nationally, will also impact property investments. If unemployment rises, then rental defaults will increase, and if wages fall, so too will rental yields as tenants push for reductions.

Investors in property should consider that the value of their assets, and the income produced by them is dependent of a number of supply / demand variables, on a local, national and international basis, and therefore perhaps the lowest risk form of property investing is to acquire properties well below market value, add further value through improvements where possible, and dispose of the property quickly in order to free up capital to repeat the cycle. This removes reliance on some of the aforementioned factors as the Investor does not require capital growth, only a buyer prepared to pay market value and able to secure the funds to do so.

Investment Characteristics

Property as an asset class is generally used by Financial Advisors as a risk-management and diversification tool, due primarily to the asset class sharing a low-correlation with equity markets although some correlations do exist. It is difficult to define the portfolio planning characteristics of real estate in general terms due to the wide variety of sub-sectors which all derive growth and income from different market-sectors and investment returns are driven by different factors to the next sub-sector.

Broadly speaking however, all property sub-sectors do share a number of characteristics that make the asset class appealing to Investors seeking capital security, income and growth.

Intrinsic value - property investment assets retain a capital value throughout the useful lifetime of the asset. Provided there are buyers, and Investor is unlikely to ever lose all of their investment.

Low correlation - Property investments generate income from rentals rather than money market performance, and capital growth is driven by demand. However, every sub-sector shares at least some correlation with the general economy.

Income - Property investments derive income from rentals as people or organisations are prepared to pay to use the asset, or in the case of natural resource properties, from the sale of the commodities produced, replacing income during times of depressed interest rates.

Capital growth - Again, capital growth is driven by facilitated demand. In the case of distressed assets, Investor may be able to capture inherent value based on their purchase discount.

5 Simple Tips How To Decide On The Right Investment Property

Do you want to learn how to be a real estate investor? If you do, this is going to be an interesting article to you. You are about to discover the 5 simple tips how you can decide on the right property for investment.

One of the main problems most people faced when investing in real estate is that they do not know whether they are buying at the right property. When they have the capital to invest, they will hesitate and doubtful whether to invest. They are afraid that they might make the wrong move. This is a common issue among everyone, but can be solved by applying the 5 simple tips below...

1. Know how much you can afford

Yes, before you even start to invest, know how much you can afford and how much capital you have. You do not want to put down too much money into the investment and end up having not enough cash flow for emergency such as any major or minor repair. And make sure you have the surplus as a buffer zone for the vacant period. Remember; always keep extra capital for buffer.

2. Know the property value

Needless to explain much, you have to understand the property market in that particular area very well and you have to judge whether it is going to be a good buy. Usually people will buy below market and sell a little bit higher, or just wait for capital appreciation or rent it out. You can always check with your local bankers to get a valuation of the property price and use this number as a benchmark.

3. Perform the necessary inspection

Make sure you have an inspection list and know what to do when viewing on a property. Just follow through the list and inspect each of the items so that you are not buying something that will end up eating your money. You can also check with the local people there or the neighbor to get a clearer picture of the common problems that they faced.

4. Avoid scams and fraud

You will hear cases where people get conned by property agents. Do not let this stop you as there will be scams and fraud in every investment or businesses out there. You just need to do your homework and make sure you engage the right agent and are buying from the right owner. Put everything down into black and white, every party has to provide the necessary documents.

5. Understand and take calculated risk

Like what I have mentioned above, there is a risk in every form of investments. You just need to learn how to take calculated risk and put the risk out of the game. It will be difficult in the beginning, but once you started to understand the rules of the game, you will become better in real estate investing and take the risk out of the game.